Manchester United’s debt has reached £773.3 million as reported in the latest financial statement for the three-month period ending on December 31, 2023. The club generated revenues of £225.8 million during this time, with much of it attributed to their involvement in the Champions League. Their premature departure from Europe will only show up in future financial reports. Specifically, there was a 31.53% rise in revenue compared to the previous year and the net profit climbed to £20.4 million for the quarter. Revenues from matchdays increased by 59.2% compared to the previous year, and broadcasting revenue saw an 81% increase, attributed to participation in the Champions League instead of the Europa League. Furthermore, there is speculation about Mount’s potential transfer as his future at United is uncertain. United are preparing to experience setbacks against Tottenham and Arsenal in order to make Ratcliffe’s dream come true. Sir Jim Ratcliffe has agreed to make a minority investment, but it has been noted that Manchester United is still in significant debt, including long-term debt and a revolving credit facility. The long-term debt has remained at $650 million over the past year, but due to a decrease in exchange rates between the US dollar and GBP, the debt has decreased from £535.7 million to £506.5 million in the last three months. The club also makes use of a revolving credit facility, which is similar to a company credit card and changes based on the seasonal flow of funds. The facility’s debt increased due to spending in the summer transfer market, reaching £266.8 million as of December 31, 2023, which is over £60 million more than the previous year. Additionally, financial reports show that Manchester United spent £9.6 million on fees related to the strategic review led by Raine, which ultimately resulted in Ratcliffe’s investment in the club. That amount covers some of the initial costs associated with the transaction, such as paying for legal fees, accounting services, and other professionals involved in the deal. The remaining portion of Raine’s $31.5 million payment will be dispersed in the third quarter earnings. United’s chief financial officer, Cliff Baty, expressed satisfaction with the strong revenues generated in the first half of the fiscal year and reaffirmed expectations for record revenues for the entire fiscal year. With Sir Jim Ratcliffe’s investment now finalized, there is a shared enthusiasm at Manchester United to collaborate with the new co-owners and push the club towards success on the field.
